Lehman Brothers Holdings Inc. announced Tuesday that it will pay various creditors $10.5 billion in its second round of distributions since filing for bankruptcy.
Of that total, $10.2 billion will go to both third-party creditors and Lehman affiliates and subsidiaries. The defunct investment bank also will pay $328 million for recently allowed claims that had not been approved at the time of an initial $22.5 billion distribution in April, and reserve an additional $1.7 billion in cash for disputed claims.
Lehman’s September 2008 collapse, caused largely by its exposure to risky real estate investments, contributed to the global financial crisis. Last June, after a protracted fight over possible repayment plans, Lehman announced a plan that would return $65 billion to creditors. Under the current agreement, creditors of Lehman’s parent company will receive approximately 21 cents on the dollar, while derivatives claimants will receive roughly 28 cents, according to Reuters. A third round of distributions is scheduled for March 30, 2013.
Read more at Thomson Reuters and the Wall Street Journal.
For more InsideCounsel coverage of Lehman Brothers, see:
Lehman Brothers sues to recover $2.5 billion from Citigroup
End to Lehman’s bankruptcy in sight
Lehman giving up on bid for Barclays’ $11 billion
Former Lehman affiliate objects to possible $90 million insurance release
